Insights on the 12th Five-Year Plan
For the last 30 years, China's story has been one of rapid economic growth, driven by the expansion of export focused manufacturing. China's 12th Five-Year Plan marks a turning point from the past emphasis on headline growth; China's leaders are now prioritising measures to ensure more widespread prosperity, and transition to more of a consumer and services-based economy. The new Plan puts China's people at the very heart of its future development.
In the 11th Plan, China narrowly missed its target of spending two percent of GDP on research and development (R&D). In the new Plan, China is aiming to raise R&D expenditure to 2.2 percent of GDP, a significant rise given that overall growth is also likely to remain high. There is much greater emphasis on innovation throughout industry and also many specific green targets, including reducing average energy use per unit of GDP by 16 percent and reducing CO2 emissions per unit of GDP by 17 percent.
Demonstrating an understanding of the Five-Year Plan can be an important way for businesses to demonstrate their commitment to local partners and stakeholders, and show that they are making a positive contribution to China's long-term development. Our Insight Series also presents six important reasons why no business can afford to ignore the Five-Year Plan.
Over the coming months we will be adding more sector analysis and updates to this Insights Series.